Trump’s Second Act On Tariffs Takes Effect With 10% Duty On The World

US President Donald Trump has activated a fresh 10 per cent tariff on imports from across the globe, effective from 10:31 AM IST on Tuesday.
This development comes mere days after the Supreme Court invalidated his prior sweeping duties, compelling the White House to pivot to alternative legal mechanisms to sustain his protectionist trade stance.
The new measure draws authority from Section 122 of the 1974 Trade Act, which empowers the president to impose such tariffs for up to 150 days without needing congressional assent. Trump signed the executive order last Friday, opting initially for a 10 per cent rate despite earlier threats of escalating it to 15 per cent.
Administration insiders reveal that preparations are underway for a formal directive to hike the tariff to 15 per cent, though no precise timeline has been confirmed. This follows the Supreme Court's ruling that Trump's earlier "reciprocal" tariffs breached emergency-powers legislation, forcing a strategic reroute.
Certain exemptions persist under the new order. Goods adhering to the North American trade agreement—encompassing the US, Canada, and Mexico—escape the levy. Select agricultural products, previously spared, also retain their relief status.
The tariffs took effect just hours ahead of Trump's State of the Union address to Congress, where he is poised to underscore his economic blueprint. With Republicans gearing up for midterm elections, public sentiment sours: a Washington Post/ABC/Ipsos poll indicates 64 per cent disapproval of his tariff management, against 34 per cent approval.
Trump's team insists tariffs will anchor his trade policy, yet substitutes like Sections 301 and 232 of trade laws lack the prior flexibility. No new investigations have been declared, a process that could span months and add further delays.
Global reactions mount as uncertainty ripples outward. The European Union and India, among key partners, have suspended trade negotiations with Washington. In New Delhi, officials have deferred this week's US-bound talks aimed at sealing an interim deal, citing opacity in the tariff regime and risks from a potential baseline hike.
US Trade Representative Jamieson Greer appealed for fidelity to prior pacts during a Sunday CBS appearance. "We want them to understand these deals are going to be good deals," he stated. "We're going to stand by them. We expect our partners to stand by them."
The Supreme Court's intervention has prompted a worldwide recalibration. The EU has halted ratification of its US agreement pending tariff clarification. European Central Bank President Christine Lagarde emphasised the imperative for "clarity" from the US to stabilise global commerce.
Trump amplified the pressure on Monday via social media, cautioning against defiance. "Any Country that wants to 'play games' with the ridiculous supreme court decision, especially those that have 'Ripped Off' the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!" he posted.
Traditional allies feel the strain. The UK, which secured a 10 per cent rate last year, faces exporter vulnerabilities should the levy climb. For India, the US ranks as a prime export destination for pharmaceuticals, engineering goods, textiles, and services—a 15 per cent tariff could inflate costs and stall bilateral progress.
China looms large in the equation. Trump's planned Beijing visit next month to meet President Xi Jinping may hinge on these curbs to his emergency powers, potentially reshaping high-stakes haggling. As trading partners reassess, the 10 per cent duty's endurance—or escalation—remains the pivotal watchpoint in this unfolding trade saga.
Agencies
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